DAWN FARMS TOP 9 | ISSUE 29| 2019

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. DRIVING KFC'S GLOBAL SALES

KFC is staying on top of changing global dynamics with its localized menu innovation strategy. New launches vary depending on cultural and consumer preferences and are then rolled out according to breadth of appeal. Examples include: KFC Australia – Double Down Dog, KFC Indonesia - chicken skin fries, KFC UK - Imposter Burger, while Chizza pizza was added in the Philippines. The Chizza pizza is now available in more than 15 countries across Europe after a successful product launch. In China, KFC has created a very unique but very Chinese-in-spirit street food range – click here to view >> 

2.  COSTA'S EUROPEAN ROLL OUT

In 2020, UK’s largest coffee shop chain Costa Coffee will open in Switzerland. Coca-Cola acquired Costa Coffee for $5.1billion in January 2019 and plans a brand roll-out in at least 10 of its 28 markets, including Greece, Hungary, Poland, Romania, Russia and Switzerland. This could provide stiff competition for US giant Starbucks, which currently has 60 stores throughout the country. Starbucks has launched a new ‘high traffic’ concept store, Starbucks Now™ in Beijing, offering a more streamlined experience for delivery and customers who pre-order online. The Starbucks Now app allows customers to pre-order and pick up at their local store while all in-store orders are placed via an in-wall touchscreen system.  

3. PAPA JOHN'S BEEZZA

Papa John’s UK has just launched The Bee Sting pizza to raise awareness of the importance of bees to nature’s eco-system. The new pizza features a hot and spicy base of Amarillo chilli, signature pepperoni, mozzarella, fresh green chilli and a wildflower honey drizzle. Papa John’s has also created the ‘Beezza’ -the first pizza for bees in partnership with Thom Whitchurch, who created ‘Britain’s first tiny cookery school’. The Beezza is less than 1 inch in diameter, topped with bee-friendly wildflowers. The new range aims to encourage UK consumers to appreciate and encourage bee-friendly areas in local green spaces, supporting the Bumblebee Conservation Trust. 

4. TACO BELL TESTING NEW FRIES

If you think the ‘loaded fries’ trend has passed its peak – think again. Taco Bell USA is upping the ante by testing new Buffalo Chicken Nacho Fries and new Loaded Taco Fries. The Buffalo Chicken Nacho Fries feature shredded chicken, tangy buffalo sauce, nacho cheese sauce, shredded cheddar cheese, sour cream, and pico de gallo. The Loaded Fries is a bed of seasoned fries topped with nacho cheese sauce, seasoned beef, lettuce, tomatoes, shredded cheddar cheese, crunchy red strips, and sour cream. Frittenwerk is a German fast casual chain specializing in fries with mouthwatering toppings from Canadian Poutine, Pink Persia to Thai Peanut meatballs – check out Frittenwerk’s range here >> 

5.  UK FTG OUTLOOK REMAINS BUOYANT

Impressive growth of 26% by 2024 is forecast for the UK food-to-go market despite a challenging food market.  While growth has slowed and much political uncertainty remains, with changes towards a busier lifestyle, our appetite for food-to-go remains undiminished.  Expectations are for the market to reach £23.4bn by 2024, up from £18.5bn in 2019 (IGD). Innovation, improved merchandising and ranges are all key pillars for success for the food-to-go specialist. Likewise, plant-based and sustainable packaging are notable drivers. 

6. FOOD INDUSTRY UNDER PRESSURE 

After almost a year of stagnant supermarket prices, there are signs food price inflation is creeping back into the market. In June, Tesco, Sainsbury’s and Asda increased prices to pass on unrelenting inflationary pressures to consumers, driven by commodity costs, the weak pound and international volatility. Cost pressures include skimmed milk powder prices (+30% YOY), potatoes up 13% and pork up 8% - with the prospect of further price rises in the case of a ‘no-deal Brexit’. Tesco had already been forced to increase its pork prices due to African Swine Fever, which also faces further volatility. In terms of Brexit, click here to read the FDF’s response to new PM Boris Johnson’s appointment on behalf of the food industry >> 

7. DOMINO'S PILOTS 'PLANT PROTEINS'

Domino’s Australia is launching 3 meat free pizzas in September. The varieties include soy-based Beef & Onion, Beef Loaded Burger and Beef Taco Fiesta. According to the company, beef is its second most popular topping so it makes sense to start here with a plant-based alternative. As mentioned in last week’s Top 9, the plant-based market is forecast to reach $320m by 2025 (Global Market Insights). Pieology in the US is another company being innovative in plant-based pizza toppings describing its new premium options as “a healthy choice for anyone who wants to enjoy a new style of protein”. Papa John’s UK also recently launched a vegan Hot Dog pizza. 

8. SAINSBURY’S DEAL WITH DELIVEROO

Sainsbury’s is hoping to grab a slice of the fast growing £8bn food delivery market (+13% 2017-18) by teaming up with Deliveroo. It will launch a trial on the delivery app across 5 stores to begin with, available until 10pm.  There will be almost 50 Sainsbury’s products on the app, including sourdough pizzas, snacks, salads and dips. Prices will remain the same as they are in store, just adding a standard delivery change from Deliveroo. Last year Asda joined forces with Just Eat, trialing a small range of 4 hot pizzas delivered, and earlier this month announced this would be rolled out to 50 stores. 

9. FRENCH DELIVERY - VA VA VOOM!

Food delivery in France is also fast growing, according to Foodservice Vision, valued at $3.3bn and growing by 20% year on year. French millennials have contributed to this strong growth with 7 out of 10 regularly getting deliveries at home and at the office. Three orders are placed every second with an average expenditure of €16 for lunch and €17 for dinner.  Delivery is meeting the busy lifestyles of today with speed, immediacy and diversified options.  The market is not yet saturated and still leaves many opportunities.  Deliveroo predicts it will reach a third of the French population in 2019. 

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